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Investment Criteria
SPHI seeks to make later-stage investments in each of our areas of sector specialization including business services, healthcare, retail & consumer and natural resources. We also make venture capital investments in certain circumstances and often in conjunction with other venture capital firms.
In assessing companies for investment, Stevenson targets the fundamental factors that will drive a company's growth and ultimately maximize value. The characteristics we look for in a company vary depending upon its business activities, stage of development, industry outlook and existing capital structure. However, all companies we invest in must:
- Belong to an industry group with strong fundamentals and precedents for withstanding economic downturns
- Demonstrate a unique and sustainable competitive advantage or leading market position
- Benefit from significant unexploited market opportunities or be well positioned to consolidate others within a fragmented marketplace
- Be operationally sound
- Generate strong operating income and predictable cash flow requisite to servicing a leveraged balance sheet
- Have experienced and principled management with an established track record who are willing to invest their personal capital as a commitment to the success of the enterprise
We recognize that the best opportunities are often times the most difficult to uncover or classify and, as such, the main criterion for consideration is that an opportunity demonstrate above-average growth prospects. |
